Posts Tagged real estate transaction

Who’s who in real estate?

It takes many players to put a real estate deal together and take it from contract to closing. As a buyer/seller in real estate, it’s helpful to familiarize yourself with each of these players so that you become more educated regarding the buying or selling process, but also know that many of the roles in a real estate transaction are managed by your Realtor.
Appraisers
A professional who estimates the value of a home to be purchased. In the purchase of a home, the appraiser is usually hired by the mortgage lender to determine whether the price paid is in line with fair market value and therefore justifies the mortgage amount.

Buyer’s Agent
A Realtor who represents the buyer(s) in a real estate transaction and help the buyer purchase a home.

Home Inspector
Most purchase contracts allow a buyer to have a home inspected within five days of signing the purchase contract. A home inspector performs an inspection of the home to be purchased on behalf of the buyers in the transaction. The inspector examines the home for structural soundness and identifies recommended repairs in his or her report. Depending on the area of the country where you sell, common practice may include other types of inspections, including a termite inspection and a radon inspection.

Insurance Agent
A person who sells insurance policies, such as homeowners’ and automobile insurance. Typically, homebuyers need to show proof of homeowners’ insurance before or at the time of closing on the purchased property. Without this, some closings can’t move forward as planned. If you represent buyers, make sure they have secured a homeowners’ policy prior to closing.

Loan Officer
An employee of a mortgage lender who helps borrowers secure financing for a home purchase.

Mortgage Broker
An independent contractor who helps bring borrowers and lenders together by originating residential and/or commercial loans offered by multiple wholesale lenders.

Mortgage Lender
A mortgage loan company that originates, services, and sells loans to investors or purchasers.

Seller’s Agent
The seller’s representative to help sell a home (also often known as “listing agent”).

Title Companies
Once the purchase contract on a property is completed, terms are agreed upon, and financing arrangements have been made, the lender orders a title search of the property to be purchased. Depending on the region, a title company or practicing attorney can conduct this search. A title search is the examination of public records to determine that the person selling the property has the right to sell it and the buyer is getting all the rights to the property. The title search seeks to uncover any liens or other problems with the title. The title company then works to fix any problems with the title before issuing lender’s title insurance, or the loan policy. The loan policy protects the lender’s interests in the property. Buyers also may obtain an owner’s policy to protect their interests.

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